Gold Stays Strong Amidst Rising Fears of Recession

October 1100:002011

New York, October 11 (RainbowNewsLine.com) – The Gold rally has taken on back again after a modest fall in the past few days. Gold is expected to rise further as one bad news after another is surfacing from the European as well as American economies. This makes Gold the safest form to hold value given the current economic turbulence.

The first set of bad news is about the Greek economy. President Obama says that the Greek crisis has the potential to bring the world back into recession. He has also been quoted saying that the crisis threatens the American economy. As rioting erupts in Athens and other parts of Greece, it is becoming certain that the Greek population is not very much in favor of the Government’s imposed austerity. Thus a Greek default may be near. This news is shoring up Gold prices.

On the other hand, the news that both the Bank Of England as well as the European Central Bank have announced quantitative easing is making gold more valuable. These central banks are unleashing more and more currency notes in the market without any backing making them less valuable.

It will therefore take more currency notes to buy the same amount of gold, thus making Gold a rising commodity.